If you have a retirement plan, a 401K, IRAs invested in stocks or bonds, or any kind of investments, you have received your October 1 quarterly statement by now. Have you dared to open it?
Just about all of us, whether in stocks or bonds, have had a very large increase in the value of our investments or retirement nest eggs, or 401K, or tiaa-cref plan...
It almost doesn't matter what your investment, we all got a boost from 5 to 10% or more. I checked my own statements, and they're up, well, more than I could have possibly dreamed for. This past quarter was one of the best in our lifetimes.
And the gains have continued. Since October 1st, many of us have had gains of at least 2, 3, 4% - if a person had 100,000, they just earned 2-4 thousand dollars in the past two weeks. If they had 100,000 on July 31st, they have earned $5,000 to %15,000 in the past 3 months. And it gets better...
Usually, Sept & October are the two worst months of the year, and there is usually a big year-end rally from Nov 1 until February or March - and a lot of it comes by early January (it's called the "Santa Claus Rally"). We don't always get a Santa Claus rally, but it happens about 70% or 80% of the time - only doesn't happen when the bottom falls out, as it did since 2007.
So the really weird thing this year is that the stock market went through the roof at precisely the time when many of us would expect the annual drop to happen.
What this all means is that we're not going to have a stock market problem in the Fall this year, and in fact, we are going to have a Santa Claus rally on top of huge gains that we've already had.
If you don't believe me, pay attention to some real technical experts like Ralph Acampora. Or Warren Buffett.
Or just watch what is happening. There isn't much upside resistance in this stock rally.
Look at where equity prices have been in the past 10 years. We've been in the septic tank for the past 3 years, and everyone has been afraid. Stock prices were undervalued, and the whole world economy went into the mud.
There was a panic. A lot of people think the disaster is still unfolding, but I'm here to tell you that things are shooting up. Ralph Acampora is one of the all-time best experts at this, and he sees this rally going for months and months ahead.
Why? Because things got as bad as they can, and we are ready for a huge cyclical boost. The world is ready to grow - people need to buy clothes, cars, computers, everything...all the purchases they ahve postponed.
The world is going to zoom from depression to expansion, and it's already happening in the emerging markets. If you haven't been noticing this, open your eyes. Look at what is happening. We are in a BULL MARKET ladies and gentlemen, and this is a "young bull market," and it probably has at least 2 years to run.
Now - 2 years from now, the bull might start to run out of steam, or it will within the next 5 years - it won't go on forever, and we'll probably have another recession within the next 5 or 6 years, because recessions usually happen about that often.
There is a cyclicality to markets. We have been in one of the worst downturns ever, and that means we are in the beginning phases of one of the biggest "bouncebacks" ever.
If things were that bad, then the emerging markets would not be leading the world forward. But - they are! It's nations like Brazil, India, and China that are pulling the world out of this semi-depression - and there are a lot of other nations like Vietnam and most of South America that are also going to be pulling the world into